STAND. COM. REP. NO. 253

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1047

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 1047 entitled:

 

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to require the actuary to conduct an annual stress test of the Employees' Retirement System (ERS) and the ERS Board to submit an annual report on the result of the test to the Legislature.

 

     Your Committee received testimony in support of this measure from the University of Hawaii Professional Assembly and one individual.  Your Committee received comments on this measure from the Employees' Retirement System.

 

     Your Committee finds that the successful investment of the ERS funds is essential to the stability and sustainability of the ERS.  Clarity and transparency regarding the information upon which ERS decisions are based are crucial to allow for employees, retirees, and the public to have an understanding of, and confidence in, the ERS.  Your Committee further finds that an annual stress test will help to ensure that the ERS Board makes decisions based on widespread actuarial data and projections, rather than on data resulting from isolated events.

 

     Your Committee has amended this measure by:

 

     (1)  Inserting an effective date of January 7, 2059, to encourage further discussion; and

 

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1047, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1047, S.D. 1, and be referred to your Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

 

 

 

________________________________

GILBERT S.C. KEITH-AGARAN, Chair